True North Copper (TNC) has announced it has locked in a partnership with one of the world’s largest natural resource companies for a Queensland copper project.
TNC has signed binding offtake and toll-mining agreements with Glencore International for its Cloncurry Copper Project.
The highlights of the partnership include a binding offtake agreement with Glencore for 100 per cent of copper concentrate from TNC’s Cloncurry Copper Project and the toll-milling services, with up to one million tonnes of ore per year for the Cloncurry Copper Project’s Life of Mine (LoM).
Some of the key terms include:
- Mutually agreed ore delivery and processing schedules
- Agreement in place ahead of mining and processing of sulphide ores
- Offtake agreement sales price for the metals contained in the copper concentrate in line with the market commercial terms for copper concentrate, including adjustments for penalties, treatment and refining charges and a freight credit
- Toll-milling agreement containing customary terms and conditions for a contract of this nature, including:
- agreed tolling charge, which reflects current market rates for copper ore processing in Cloncurry, Queensland
- agreed process for assaying, weighing, sampling and moisture determination in relation to copper concentrate produced
Some of the key benefits to TNC and the Cloncurry Copper Project include:
- Concentrate processed at the nearby Mt Isa Smelter (approximately 120km by major arterial road network), providing greater freight certainty and economic and logistics value
- TNC will be entitled to claim a 20 per cent Queensland State Royalty discount for all material processed through the Mt Isa Smelter
- Provides certainty of concentrate sales for the Cloncurry Copper Project
TNC Managing Director, Marty Costello, said executing binding offtake and toll-milling agreements with an industry major such as Glencore is a significant milestone for TNC and its Cloncurry Copper Project.
“Glencore has agreed to purchase 100 per cent of the copper metal produced at Cloncurry Copper Project and we can process up to one million tonnes of ore each year through the nearby Processing Plant near Cloncurry.”
Mr Costello said that the Cloncurry Copper Project is fully permitted and TNC is on track to soon be in production for copper with the project located in a Tier One jurisdiction.
“TNC’s investment thesis since listing last year has only improved, and we are excited to demonstrate this in the weeks and months to come.
“We’re thrilled to partner with Glencore, recognising our substantial synergies and potential for future collaborations.”
Mr Costello said that TNC is incredibly proud that the partnership will deliver economic benefits to north-west Queensland.
“We aim to create as many jobs and opportunities as possible for the people, businesses and communities of north-west Queensland.”
